Arun, Basheerand Christy are in partnership with a profit-sharing ratio of 3:2:1. They decided to dissolve the firm. On the date of dissolution, their capitals were Rs. 20,000/-, Rs. 15,000/- and Rs. 10,000/-respectively. Their books of accounts showed the total creditors as Rs. 20,000/- and bills payables as Rs. 5,000/-.
Christy advanced an additional Rs. 10,000/ be-sides his capital, to the firm. At the time of dissolution has an unrecorded liability for Rs. 4,000/-. The cost of dissolution amounted to Rs. 2,000/-. The rm is having a cash balance of Rs. 8,000/- as per records.
You are asked to find out:
(a) Sundry assets
(b) Profit or Loss on Realisation
(c) Amount to be received or brought in by each partner.
